Dallas 3rd in Office-Apartment Conversions

Dallas is one of the top metros for converting vacant office space into new apartments, per a new RentCafe report. Redeveloping underused office space is a key part of plans in many big cities to adapt the post-pandemic world and create much-needed housing.

More than 3,100 Dallas area apartments will be converted from office space this year, and more than 3,800 are planned in the future. The Dallas region falls behind just New York City and Washington, D.C., in the number of planned office conversions. More than 55,300 new units are expected from office-to-apartment flips nationally this year — up from 12,100 in 2021. The flips now account for 38% of the 147,000 apartments planned in adaptive reuse projects.

Planned office conversions in Dallas are up 58% this year compared with last year. The average asking rent for converted units is nearly $2,700 monthly, above the average downtown rent of $2,300 a month.